India's fuel demand in January rises 3.2% to 20.49 million tonnes

Consumption of fuel, a proxy for oil demand, rose to 20.49 million metric tons, data from the oil ministry's Petroleum Planning and Analysis Cell (PPAC) showed

India's January fuel consumption hit its lowest monthly level since October, but was up 3.2 per cent year-on-year at 20.49 million metric tons, oil ministry data showed on Friday. 

Why it's important 

India is the world's third-largest consumer and importer of oil. The data is a proxy for the country's oil demand. 

By the numbers 

On a monthly basis, January fuel demand was its lowest since October, down more than 1 per cent from 20.73 million tons in December, the Petroleum Planning and Analysis Cell's (PPAC) website shows. 

Sales of gasoline, or petrol, eased 0.3 per cent compared to last month at 3.3 million tons. 

 

Diesel consumption fell nearly 4 per cent month-on-month to 7.7 million tons in January. It was up 4.3 per cent year-on-year. 

Cooking gas or liquefied petroleum gas (LPG) sales increased 5.2 per cent on an annual basis to 2.84 million tons, while naphtha sales fell 12.2 per cent compared with last year to 1.15 million tons. 

On a monthly basis, LPG and naphtha sales rose 2.16 per cent and 7.48 per cent respectively. 

Context 

India's sluggish economic growth is likely to persist next fiscal year, weighed down by global risks, said a finance ministry report which called on states for business reforms. 

The Reserve Bank of India (RBI) cut its key interest rate for the first time in nearly five years on Friday, as it seeks to boost the economy, and sees inflation easing towards its 4 per cent target. 

India also slashed personal tax rates in its annual budget this month, as the world's fifth largest economy focuses on boosting domestic demand in the face of global economic uncertainty due to potential new tariff barriers.